|
Coffee Estate Identification |
 |
 |
 |
A survey of estates was conducted and a coffee estate has been identified as a possible location for the COD. Some of the highlights of this estate are: - Size: 22 acres
- Asking price: Rs. 1,000,000/acre ($25,000/acre)
- Possible negotiable price: Rs. 700,000 ($17,500/acre)
- Total cost (22 acres): $385,000 – $550,000
- Proximity to Kalpetta: 2 Kilometers
- Close proximity to Calicut (major city, with airport)
- Very close to major highway connecting Calicut and Ooty
- Projected net profit from Coffee (existing): Rs. 40,000 per acre, per year
If Profugo obtained the property at the asking price (worst case) and was able to make an average of Rs. 25,000 per acre, per year from the Coffee (price of coffee being constant), then this will generate a total net profit of Rs.550,000 per year ($13,750). Using this approximation, Profugo will be able to recover the investment in the land in about 40 years. This approximation considers the income generated from Coffee alone and that the price of Coffee is constant. However, the intention is to derive revenue from various other sources including dairy farming and other rotated crops.
|
First Project 